MARUTI SUZUKI INDIA LTD: A SHORT TERM INVESTMENT

Our recommendation SUN TV Networks has been doing reasonably well with price moving from Rs 359 to Rs 380 in just 3 days.

Maruti Suzuki India Ltd looks another stock worth buying. Share should be bought on every correction (with Rs.4,400 as a strong  support area) for a target price of Rs.5,200. Time frame: 3-4 weeks. We  expect Maruti to report strong Q2FY16 numbers.

 Our calls are from an investment  point of view. The market conditions are highly volatile & presently favor  short term investments, provided you get into strong counters, as the  broader market trend is turning bearish. If the Nifty fails to fill-up the big gap area formed around 8100-8200 in the Nifty in August 24, 2015, you  can see a whip-saw which can take the Nifty all the way down to re-test  7540. We have to keep this in the back of our mind to avoid a bear trap. In  the circumstances, one has to take out small profits wherever you get till  the market direction/trend becomes clear.

 Post August 2015 correction, We see a change in the trading pattern -- the  mid & small cap stocks are performing better than the large caps with good  P/V action. One explanation is that, the selling in large caps is still  coming from FPI investors & Hedge funds, while Indian MF & HNI's are making  delivery based investment in small/mid-caps, which is driving their prices  up. Make merry while the sun shines.